Contractor Equipment-Management Practices

Abstract
A survey of the current equipment practices and policies of heavy construction contractors having annual contract volumes between $20 and $200 million was performed. Information on selected equipment management decision factors, record-keeping practices, tax depreciation methods, obsolescence, and cost of capital is discussed. Contractors proved to be aware of many factors affecting the machine replacement question but are in doubt as to the magnitude of affect and the values that should be assigned to several of the factors.